EXTENSIONS OF REMARKS

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

July 31, 2012 CONGRESSIONAL RECORD — Extensions of Remarks E1351 

FEDERAL RESERVE 

TRANSPARENCY ACT OF 2012 

SPEECH OF

HON. SPENCER BACHUS OF ALABAMA

IN THE HOUSE OF REPRESENTATIVES

Tuesday, July 24, 2012 

Mr. BACHUS. Mr. Speaker, I rise in qualified support of H.R. 459, the Federal Reserve 

Transparency Act of 2012. Before addressing 

the merits of the legislation, I want to pay tribute to its author, the gentleman from Texas, 

Mr. PAUL, who serves as the Chairman of the 

Financial Services Committee’s Domestic 

Monetary Policy Subcommittee. His tireless 

advocacy on monetary policy issues and his 

crusade for a more open and transparent Federal Reserve have been hallmarks of his congressional career. With that career coming to 

a close at the end of this Congress, it is appropriate that the House consider this bill. 

H.R. 459 is bipartisan legislation which will 

help promote greater public understanding of 

the Federal Reserve’s operations and the impact of its decisions on average Americans. A 

more transparent central bank will be more accountable for its decisions, which have broad 

consequences for the American economy, including consumers, savers and small businesses. By de-mystifying the Federal Reserve, 

we can enhance public confidence in the institution and help address some of the legitimate 

questions the American people have in the 

wake of the extraordinary measures that the 

Fed took at the height of the financial crisis, 

which have resulted in a tripling of the size of 

the Fed’s balance sheet since 2008. 

To his credit, Chairman Bernanke recognized the need for the Fed to improve the 

transparency of its operations early on in his 

tenure, and under his leadership, the Fed has 

made significant strides in this area. Among 

other initiatives, the Chairman now holds quarterly press conferences, giving the American 

public an insight into his thinking on the state 

of the economy and the basis for monetary 

policy judgments that would have been unheard of under past Fed Chairmen. The Fed 

has also achieved a greater level of clarity in 

policy statements issued by the Federal Open 

Market Committee, and has become much 

more explicit in its targeting of inflation. 

While these are welcome developments for 

which Chairman Bernanke should be commended, in a representative democracy, maximum transparency is essential to maintaining 

the trust of the governed. If we err, it must be 

on the side of the public’s right to know. By removing certain statutory limitations on the current authority of the Government Accountability Office (GAO) to audit the Fed’s operations, H.R. 459 builds on the reforms that 

Chairman Bernanke has instituted and will 

make for a more open and accountable central bank, which is a goal we all share. 

Having said that, no legislation is perfect, 

and there is one aspect of this bill that, if not 

carefully implemented, runs the risk of undermining the Fed’s political independence. Specifically, the bill would authorize the GAO to 

audit the Federal Reserve Board’s ‘‘deliberations, decisions, or actions on monetary policy 

matters,’’ thereby removing a limitation that 

was imposed on the GAO when it was first 

given statutory authority to audit the Fed in 

1978. Proponents of expanding the scope of 

the GAO’s audit authority cite the unconventional policy interventions carried out by the 

Fed in recent years in its attempt to stabilize 

the financial system and stimulate the economy as justification for a more robust congressional role in overseeing the central bank’s operations. It should be noted, however, that the 

inclusion in the Dodd-Frank Act of reforms first 

proposed by Financial Services Committee 

Republicans that significantly curtail the Fed’s 

emergency lending authorities under section 

13(3) of the Federal Reserve Act go a long 

way toward addressing concerns about the 

Fed’s ability to conduct rescues of individual financial institutions without the review and approval of Congress. 

As a general matter, I worry that the level of 

congressional scrutiny authorized by H.R. 459 

may, if not exercised cautiously and responsibly, be incompatible with the need to insulate 

the Fed from political pressures and ensure 

that its decisions are based on sound economic principles rather than on jaw-boning 

from Capitol Hill. I am therefore sympathetic to 

Chairman Bernanke’s argument—which he 

made in recent testimony before the Financial 

Services Committee—that a central bank that 

operates free of such political influence is likely to produce better economic outcomes and a 

more stable interest rate environment. 

Indeed, the danger of allowing political considerations to guide monetary policy judgments was on full display at a recent hearing 

in the other body, where one of the Senators, 

citing Congress’ inability to reach consensus 

on how to jump-start our anemic economic recovery, loudly urged Chairman Bernanke to 

‘‘get to work’’ and implement a more aggressive monetary easing. This kind of rhetoric underscores the need for the GAO to exercise its 

expanded audit authority under H.R. 459 prudently, and to resist any efforts by Members of 

Congress to use this new tool to influence decisions on monetary policy. Failure to protect 

the central bank’s independence from such 

political pressure will have dire consequences 

for our economy and for the legitimacy of the 

Federal Reserve as an institution. 

Concerns about the scope of GAO’s audits 

of monetary policy deliberations were never 

aired in the Financial Services Committee because of a decision by the House Parliamentarian to refer H.R. 459 exclusively to the 

Committee on Oversight and Government Reform. This referral, which Dr. Paul and I challenged at the time in extensive written correspondence and in meetings with the Parliamentarians, ignored decades of past precedents recognizing the Financial Services Committee’s jurisdiction over legislative proposals 

affecting the Federal Reserve’s conduct of 

monetary policy. While the Parliamentarian ultimately granted the Financial Services Committee a sequential referral of H.R. 459 after it 

had been reported to the House and scheduled for floor consideration, the initial referral 

to the Committee on Oversight and Government Reform short-circuited the legislative 

process and denied Members of the Financial 

Services Committee, including Dr. Paul, an 

opportunity to fully debate the important issues 

of Federal Reserve transparency and independence raised by this legislation. 

Again, I commend Dr. Paul and Chairman 

Bernanke for their efforts to bring greater 

transparency to the Fed’s operations. 

f 

HONORING ALEXANDRE LOPES 

HON. FREDERICA S. WILSON OF FLORIDA

IN THE HOUSE OF REPRESENTATIVES

Tuesday, July 31, 2012 

Ms. WILSON of Florida. Mr. Speaker, I rise 

to honor Alexandre Lopes, for being selected 

as the Macy’s—Florida Department of Education, 2013 Teacher of the Year. Mr. Lopes 

embodies the merit and dedication required to 

lead students in today’s challenging academic 

environment. He serves at Carol City Elementary School as a teacher in the Learning Experience Alternative Program. As an educator 

Mr. Lopes has dedicated his career to special 

needs students with communication issues. 

The LEAP program has allowed Mr. Lopes to 

express his creativity and compassion for 

teaching by using music and dance to 

progress the student’s communication skills. 

His courage, vision and passion are contributing factors behind his emergence as a pioneer in education, community leader, and role 

model amongst his peers. As a former educator I am pleased to honor Mr. Lopes, and wish 

him the best of luck as he moves into the national competition. 

f 

IN RECOGNITION OF ANN 

KATHLEEN SIMS 

HON. JACKIE SPEIER OF CALIFORNIA

IN THE HOUSE OF REPRESENTATIVES

Tuesday, July 31, 2012 

Ms. SPEIER. Mr. Speaker, I rise to honor 

Ann Kathleen Sims who helped shape the 

lives of thousands of young children in the 

Bay Area. After providing quality and affordable child care for 35 years, Ann is retiring as 

the founder and director of Bayshore Child 

Care Services. 

Ann built the five day care centers in Daly 

City with endless passion and dedication offering children a place to learn, be fed, hugged 

and loved while offering their parents the freedom to work and provide for their families. 

Ann grew up near London and received her 

teaching diploma from Philippa Fawcett College, an affiliate of London University. She 


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